Turkey-based Genel Energy is planning to launch the tender for its $2.5bn Miran gas field development project in the fourth quarter of 2015, according to a company spokesperson.

The spokesperson told MEED that Genel Energy has held talks with engineering, procurement, and construction (EPC) contractors in order to assess their suitability for the contract.

The comments from the firm come amid concerns the scheme could be delayed due to low oil prices and sporadic payments from the Kurdistan Regional Government (KRG) to oil producers in the Kurdish region of northern Iraq.

The EPC contract is expected to be awarded in the first half of 2016, according to the spokesperson.

Midstream debt and equity financing is expected to be secured during the second half of 2016, with a final investment decision to be taken shortly afterwards.

Genel Energy says first gas is expected 30-36 months after the final investment decision.

Under this time frame, the earliest that first gas can be achieved is in the first half of 2019. This is less optimistic than previous forecasts.

In an investor presentation published in May 2014, Genel Energy forecast the Miran field would start producing in 2017.

The firm says the project may see further delays if it does not receive timely payments for exports from its operational oil and gas fields.

“Sanctioning of this development activity is subject to normalisation of payments for oil exports from Taq Taq and Tawke, among other considerations,” Genel Energy said in an emailed statement sent on 28 September.

In August, the company was owed a total of $378m by the KRG and the government’s total debts to international oil companies exceeded $1bn.

On 9 September, Genel Energy said the Tawke field partners had received a gross payment of $30m for oil exported to Turkey through pipeline. Of this, Genel Energy’s share of the gross payment was $8m.

The day before, on 8 September, Genel Energy announced that the Taq Taq field partners had received a gross payment of $30m from the KRG. The firm’s share of the gross payment is $16.5m.

At the time, Genel Energy CEO Murat Ozgul said he saw the payment as confirmation of Erbil’s commitment to pay contractors for oil exports.

“Regular payments would allow us to plan for continued investment in our oil and gas assets, which have the potential to create significant further value for the Kurdistan region of Iraq,” said Ozgul.

Genel Energy is developing the Miran gas field on a production sharing contract (PSC) basis in a licensed area spanning 1,015 square kilometres. The firm says the field will produce up to 200 million cubic feet a day (cf/d) of gas. 

The scope of the EPC contract includes:

• Gas treatment plant 
• Drilling of wells
• Laying of pipelines
• Degassing station
• Manifolds
• Condensate facilities
• Wellhead separation units 
• Pumping system
• Wellhead facilities
• Oil and gas treatment plants
• Natural gas liquid (NGL) facilities
• Water and gas injection
• Associated utilities and facilities

In the Kurdish region of northern Iraq, Genel Energy has stakes in the Taq Taq and Tawke oil fields, as well as in the gas assets of Miran, Dohuk and Bina Bawi.